Centerra Targets First Molybdenum Output at Thompson Creek in Mid-2027, Cuts Mount Milligan Costs
Key Facts
Centerra Gold said its Thompson Creek mine restart project is targeting first molybdenum production in mid-2027, with total capital estimated at $425 million to $450 million. The update came in the company's third-quarter results, published on October 29, 2026, which also showed a reduction in all-in sustaining cost guidance at the Mount Milligan mine. The cut applies to the by-product cost measure, which includes the impact of copper credits; the company did not change its gold production cost guidance at the mine. The chief executive said the company expects to deliver the restart project "within its capital cost estimate." The disclosure therefore combines progress on the molybdenum project with an improved cost measure at one of the company's producing mines.
Centerra lowered its 2026 all-in sustaining cost guidance for Mount Milligan, on a by-product basis, to $1,100–$1,200 per ounce from a previous range of $1,200–$1,300. The company attributed the change to strong year-to-date copper credits, not to a general improvement in operating efficiency or lower gold production costs. It kept gold production cost guidance at Mount Milligan at $1,450–$1,550 per ounce. The company said, "Strong by-product copper credits enabled us to lower full-year guidance at Mount Milligan." It also maintained consolidated 2026 all-in sustaining cost guidance, on a by-product basis, at $1,650–$1,750 per ounce.
Quarterly all-in sustaining costs at Mount Milligan, on a by-product basis, were $985 per ounce in the third quarter, down 22% from the previous quarter. The company linked the decline to higher gold production and sales, along with copper credits. The mine produced 44,070 ounces of gold and 12.8 million pounds of copper during the quarter, with gold production up 15% from the second quarter. Across the company, gold sales totaled 74,387 ounces at an average realized price of $3,483 per ounce. Copper sales were 13.2 million pounds at an average realized price of $5.74 per pound.
Centerra's third-quarter revenue rose to $500.3 million, up 27% from $395.2 million in the same period of 2025. The company reported net earnings of $88.7 million, or $0.46 per share, while adjusted net earnings were $71.8 million, or $0.37 per share. As of September 30, 2026, total liquidity reached $998 million. This included $398 million in cash and $600 million available under the company's credit facility. These figures were included in the results disclosure, which covered quarterly performance, project plans and annual cost guidance.
The second-quarter update had reported that about 52% of the Thompson Creek infrastructure refurbishment was complete, and that sustaining capital spending had reached $256.1 million since the restart decision in September 2024. A feasibility study published in 2024 estimated that restarting Thompson Creek on a stand-alone basis would deliver an after-tax net present value of $185 million and an internal rate of return of 15%, assuming a flat molybdenum price of $20 per pound. The company also outlined a plan at the time to gradually increase Langeloth's capacity to 40 million pounds of molybdenum per year by 2028. This coincides with the expected first full year of production at Thompson Creek. These figures remain part of the context for the project and its associated processing plans.
For its other growth projects, Centerra is targeting completion of an updated preliminary economic assessment for Kemess in mid-2027. It is also targeting the start of gold production at Goldfield by the end of 2028. The company said its third-quarter results call will be held on October 30, 2026, at 9:00 a.m. Eastern Time. In the stock market, the company's New York-listed shares closed at $20.43 on October 29. The call is scheduled one day after the results were published, while the announced dates for the Kemess and Goldfield milestones are the next timelines set out in the company's disclosure.